Stamp Duty Claw back vs VAT Claim back!

S

Supergod

Guest
This may be a very silly question but here goes. I bought my house 3.5 years ago as a ftb and paid no stamp duty. My girlfriend and I are getting married and are buying a new house and wish to rent mine out. As I haven’t lived in it for five years this would involve a stamp duty claw back on the original amount paid as revenue now see this as an investment property. This stamp duty is not calculated pro rata ie I will have to pay full whack!( not 0.3). My question is if this is now considered an investment property am I now entitled to claim back the VAT on the original purchase price? (I also know that this amount would then be payable back to revenue in the form of VAT on any rental income but it would allow me to pay the stamp duty up front).

Thanks in advance for any help.
 
Hi

Not 100% on this but i think that you would have needed to claim the vat back near time of purchase. Ie within the 2 month vat period.
 
a) You can only VAT on the property within next VAT period post sale.
b) Your claim must be accompanied by an invoice from the developer.
c) In some cases, where there is a time delay in receiving invoice, the Revenue will accept some leeway.
 
What about the future. If you start charging vat on rents on one prop you will have to do it on any other prop you rent out in the future. Also the added vat charge would not be very attractive to the potential tenant. They can't claim the vat back so its an added cost.
 
Also the added vat charge would not be very attractive to the potential tenant
Click to expand...

I think the way it works is that the tenant pay the same amount to you.
House Ex VAT
Rent 827
Vat 173
Rent from Tenant 1,000

House incl VAT
Rent received from tenant 1,000

This has been discussed on AAM before see here
 
You must log in or register to reply here.
Back
Top